Purpose – The paper aims to investigate the effect of GDP growth on crime and to test the hypothesis ofnonlinearity. Additionally, we estimate the interaction between GDP and income inequality and examine itsimpact on the relationship between GDP and homicide rates.Design/methodology/approach – The study utilizes panel data from the Organization for EconomicCooperation and Development (OECD), spanning the period from 2000 to 2018 and estimates dynamic panelGMM models.Findings – We found a nonlinear relationship between GDP and homicide rates, indicating a dual effect ofGDP on the occurrence of lethal crimes. Moreover, income inequality conditions the effect of GDP onhomicide rates, exerting a significant influence. We conclude that in contexts characterized by high levelsof income inequality, GDP growth is more effective in reducing crime, as there is greater potential forimprovement.Originality/value – This paper contributes to the existing literature by providing insights into the complexnonlinearity between economic conditions, income inequality and homicide rates.
QC 20240925